Daily Alert – Friday 2nd July 2021: July starts quietly

Mark NugentDaily Alert, July 2021

Daily Alert – Friday 2nd July 2021: July starts quietly

It has been a quiet start to the month. Both the S&P500 and the Nasdaq will probably make new all-time highs by the final close tonight, but there have been no pullbacks or breakouts up through resistance to provide entry signals. Instead, both indices just grind upwards. This kind of trending is the most difficult to trade. Looking on the weekly charts, no equity index was easily tradable.

GOLD and oil barely move on the weekly.

Forex has meandered somewhat. The USD will end the week up and both the EUR and GBP will end down, all three going against my bias.

The economic calendar provided little if any direction to the market this week. Perhaps the most market-moving was potentially Thursday’s OPEC meeting, but that’s been rescheduled to today at 430pm BST. Maybe there will be some fallout to trade next week.

Trade of the week was S&P500 long, yielding around 2.5x daily ATR or 5x risk. However, as it was devoid of entry signals there was no reason to trade it, other than blind faith in ever-rising equities. That’s not what we do.

Have a great weekend and I’ll be back on Monday.

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